What Is a Business Continuity Plan?

A business continuity plan is a way of determining how the company will be maintained in the future. For example, this includes natural disaster planning. There are some considerations when operating any size business and they should be in writing. Putting the plan in writing will facilitate sound business decisions. Life is full of surprises, and this plan provides businesses a blueprint to follow when there is a disruption to the organization.

Why Do Businesses Need a Continuity Plan?

A business continuity plan makes life easier for employees and management when there is an unexpected disruption. It provides focus and guidance when there is an unplanned event that could rock the entire organization. For example, there should be a contingency plan in place to deal with a computer crash. The files should be backed up in at least one secure manner that protects files from fire and water. What if the business has to move to a smaller location? This could mean that employees' positions may be eliminated and jobs could merge. There should be a plan for this. Who will be in charge if something happens to the boss? How will employees be paid if systems go down?
These are all pertinent questions that must be addressed to ensure that an organization is prepared for such eventualities. Creating a continuity plan will save time, money and stress for every organization that has such a plan in place.

Creating a Continuity Plan

Writing a continuity plan can be done with the assistance of hired professionals. Risk managers are good candidates for the job. However, this plan can be done without assistance. The plan must cover the basics of daily operations. An effective tool to use to get started is a SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. These consist of internal and external factors, so this will help provide ideas that may otherwise be overlooked. This type of analysis is a common part of continuity planning and is easily accessible through an Internet search.
Technical equipment and taking care of clients should be priority number one. These are the lifeblood of the organization, so these must be addressed with careful consideration. If your business needs laptops, then you must figure out another way to operate once the battery power dies. Creation of the plan will take some time to cover every important detail, and input from employees is most helpful. Take a survey to see what components they need most for their jobs. Think what will it take to operate with the bare minimum, and who will be in charge under various scenarios.

Where to Get Professional Help

There are many companies that offer assistance with continuity plans. The cost could vary from free to a cost in the thousands depending on the consultant. However, if you would like to save money and have a hands on approach, check out a free template (see Resources). If a professional expert is more your style, try a company like Marsh's Risk Consulting. According to their website, "fewer than 30 percent of Fortune 2000 companies actually have a full business continuity plan in place." This information was taken from a research firm, and this indicates that even the best companies have blind spots. The problem is that these blind spots can lead to layoffs and bankruptcy. Therefore, it is vital to understand what it takes to operate, and sometimes an outside perspective is required. Look for referrals from other companies and check reviews before hiring anyone. Also, make sure the consultants have experience, and see what they have established for their own business continuity plan. This should help you assess their abilities.

When to Do a Continuity Plan

Time is of the essence. A continuity plan must be done proactively in anticipation of these types of problems. During the beginning stages of the business is best. The very survival of the organization could depend on being prepared for cash flow interruptions and other unforeseen issues. The sooner the better, and the more details the better. A good time to do a continuity plan is when the slow season starts for the organization. This can enhance the environment for reviewing the strengths and weaknesses of the organization. Another appropriate time is at the beginning of hurricane season, June 1, which is close to the new fiscal year.

Implementing the Continuity Plan

Implementation of the plan will determine its usefulness. The proper steps and foresight must have been taken already to create the plan. When disaster occurs, take the plan and read it over completely before doing anything. Think strategically about what is needed at the moment. Priorities must be set in every situation. Implementation of a continuity plan may not be fun, but it is necessary for the organization to survive. FINRA, the Financial Industry Regulatory Authority, has useful information regarding the financial side of business interruptions (see Resources). To paraphrase the Bible, "people perish because of a lack of knowledge." This can be true for organizations; so be prepared early and update information often.

Resources

• Busines Continuity Planning